Senate BillNo. 177


Introduced by Senator Wieckowski

February 9, 2015


An act to amend Sections 7590.1, 7591.10, 7593.1, 7593.6, 7593.7, 7594.4, 7599.32, 7599.34, 7599.42, 7599.43, 7599.48, and 7599.61 of the Business and Professions Code, relating to alarm companies.

LEGISLATIVE COUNSEL’S DIGEST

SB 177, as introduced, Wieckowski. Alarm companies: limited liability companies.

The Alarm Company Act provides for the licensure, registration, and regulation of alarm company operators and alarm agents by the Bureau of Security and Investigative Services within the Department of Consumer Affairs and makes a violation of the act a crime. The act authorizes the bureau, until January 1, 2016, to issue an alarm company operator license to a limited liability company.

This bill would extend the authorization of the bureau to issue an alarm company operator license to a limited liability company until January 1, 2022. Because a violation of the Alarm Company Act by a limited liability company would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 7590.1 of the Business and Professions
2Code
, as amended by Section 2 of Chapter 291 of the Statutes of
32012, is amended to read:

4

7590.1.  

The following terms as used in this chapter have the
5meaning expressed in this article:

6(a) “Person” means any individual, firm, company, association,
7organization, partnership, limited liability company, or corporation.

8(b) “Department” means the Department of Consumer Affairs.

9(c) “Director” means the Director of Consumer Affairs.

10(d) “Bureau” means the Bureau of Security and Investigative
11Services.

12(e) “Chief” means the Chief of the Bureau of Security and
13Investigative Services.

14(f) “Employer” means a person who employs an individual for
15wages or salary, lists the individual on the employer’s payroll
16records, and withholds all legally required deductions and
17contributions.

18(g) “Employee” means an individual who works for an
19employer, is listed on the employer’s payroll records, and is under
20the employer’s direction and control.

21(h) “Employer-employee relationship” means an individual who
22works for another and where the individual’s name appears on the
23payroll records of the employer.

24(i) “Licensee” means a business entity, whether an individual,
25partnership, limited liability company, or corporation licensed
26under this chapter.

27(j) “Qualified manager” means an individual who is in active
28control, management, and direction of the licensee’s business, and
29who is in possession of a current and valid qualified manager’s
30certificate pursuant to this chapter.

31(k) “Registrant” means any person registered or who has applied
32for registration under this chapter.

33(l) “Branch office” means any location, other than the principal
34place of business of the licensee, which is licensed as set forth in
35Article 11 (commencing with Section 7599.20).

36(m) “Branch office manager” means an individual designated
37by the qualified manager to manage the licensee’s branch office
P3    1and who has met the requirements as set forth in Article 11
2(commencing with Section 7599.20).

3(n) “Alarm system” means an assembly of equipment and
4 devices arranged to signal the presence of a hazard requiring urgent
5attention and to which police are expected to respond.

6(o) “Alarm agent” means a person employed by an alarm
7company operator whose duties include selling on premises,
8altering, installing, maintaining, moving, repairing, replacing,
9servicing, responding, or monitoring an alarm system, or a person
10who manages or supervises a person employed by an alarm
11company to perform any of the duties described in this subdivision
12or any person in training for any of the duties described in this
13subdivision.

14(p) “Deadly weapon” means and includes any instrument or
15weapon of the kind commonly known as a blackjack, slungshot,
16billy, sandclub, sandbag, metal knuckles; any dirk, dagger, pistol,
17revolver, or any other firearm; any knife having a blade longer
18than five inches; any razor with an unguarded blade; or any metal
19pipe or bar used or intended to be used as a club.

20(q) “Firearms permit” means a permit issued by the bureau,
21pursuant to Article 6 (commencing with Section 7596), to a
22licensee, a qualified manager, or an alarm agent, to carry an
23exposed firearm while on duty.

24(r) (1) “Advertisement” means:

25(A) Any written or printed communication for the purpose of
26soliciting, describing, or promoting the licensed business of the
27licensee, including a brochure, letter, pamphlet, newspaper,
28periodical, publication, or other writing.

29(B) A directory listing caused or permitted by the licensee which
30indicates his or her licensed activity.

31(C) A radio, television, or similar airwave transmission which
32solicits or promotes the licensed business of the licensee.

33(2) “Advertisement” does not include any of the following:

34(A) Any printing or writing used on buildings, vehicles,
35uniforms, badges, or other property where the purpose of the
36printing or writing is identification.

37(B) Any printing or writing on communications, memoranda,
38or any other writings used in the ordinary course of business where
39the sole purpose of the writing is other than the solicitation or
40promotion of business.

P4    1(C) Any printing or writing on novelty objects used in the
2promotion of the licensee’s business where the printing of the
3information required by this chapter would be impractical due to
4the available area or surface.

5(s) “Residential sales agreement” means and includes an
6agreement between an alarm company operator and an owner or
7tenant for the purchase of an alarm system to be utilized in the
8personal residence of the owner or tenant.

9(t) “Firearm permit” means and includes “firearms permit,”
10“firearms qualification card,” “firearms qualification,” and
11“firearms qualification permit.”

12(u) This section shall remain in effect only until January 1,begin delete 2016,end delete
13begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
14that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
15that date.

16

SEC. 2.  

Section 7590.1 of the Business and Professions Code,
17as added by Section 3 of Chapter 291 of the Statutes of 2012, is
18amended to read:

19

7590.1.  

The following terms as used in this chapter have the
20meaning expressed in this article:

21(a) “Person” means any individual, firm, company, association,
22organization, partnership, limited liability company, or corporation.

23(b) “Department” means the Department of Consumer Affairs.

24(c) “Director” means the Director of Consumer Affairs.

25(d) “Bureau” means the Bureau of Security and Investigative
26Services.

27(e) “Chief” means the Chief of the Bureau of Security and
28Investigative Services.

29(f) “Employer” means a person who employs an individual for
30wages or salary, lists the individual on the employer’s payroll
31records, and withholds all legally required deductions and
32contributions.

33(g) “Employee” means an individual who works for an
34employer, is listed on the employer’s payroll records, and is under
35the employer’s direction and control.

36(h) “Employer-employee relationship” means an individual who
37works for another and where the individual’s name appears on the
38payroll records of the employer.

39(i) “Licensee” means a business entity, whether an individual,
40partnership, or corporation licensed under this chapter.

P5    1(j) “Qualified manager” means an individual who is in active
2control, management, and direction of the licensee’s business, and
3who is in possession of a current and valid qualified manager’s
4certificate pursuant to this chapter.

5(k) “Registrant” means any person registered or who has applied
6for registration under this chapter.

7(l) “Branch office” means any location, other than the principal
8place of business of the licensee, which is licensed as set forth in
9Article 11 (commencing with Section 7599.20).

10(m) “Branch office manager” means an individual designated
11by the qualified manager to manage the licensee’s branch office
12and who has met the requirements as set forth in Article 11
13(commencing with Section 7599.20).

14(n) “Alarm system” means an assembly of equipment and
15devices arranged to signal the presence of a hazard requiring urgent
16attention and to which police are expected to respond.

17(o) “Alarm agent” means a person employed by an alarm
18company operator whose duties include selling on premises,
19altering, installing, maintaining, moving, repairing, replacing,
20servicing, responding, or monitoring an alarm system, or a person
21who manages or supervises a person employed by an alarm
22company to perform any of the duties described in this subdivision
23or any person in training for any of the duties described in this
24subdivision.

25(p) “Deadly weapon” means and includes any instrument or
26weapon of the kind commonly known as a blackjack, slungshot,
27billy, sandclub, sandbag, metal knuckles; any dirk, dagger, pistol,
28revolver, or any other firearm; any knife having a blade longer
29than five inches; any razor with an unguarded blade; or any metal
30pipe or bar used or intended to be used as a club.

31(q) “Firearms permit” means a permit issued by the bureau,
32pursuant to Article 6 (commencing with Section 7596), to a
33licensee, a qualified manager, or an alarm agent, to carry an
34exposed firearm while on duty.

35(r) (1) “Advertisement” means:

36(A) Any written or printed communication for the purpose of
37soliciting, describing, or promoting the licensed business of the
38licensee, including a brochure, letter, pamphlet, newspaper,
39periodical, publication, or other writing.

P6    1(B) A directory listing caused or permitted by the licensee which
2indicates his or her licensed activity.

3(C) A radio, television, or similar airwave transmission which
4solicits or promotes the licensed business of the licensee.

5(2) “Advertisement” does not include any of the following:

6(A) Any printing or writing used on buildings, vehicles,
7uniforms, badges, or other property where the purpose of the
8printing or writing is identification.

9(B) Any printing or writing on communications, memoranda,
10or any other writings used in the ordinary course of business where
11the sole purpose of the writing is other than the solicitation or
12promotion of business.

13(C) Any printing or writing on novelty objects used in the
14promotion of the licensee’s business where the printing of the
15information required by this chapter would be impractical due to
16the available area or surface.

17(s) “Residential sales agreement” means and includes an
18agreement between an alarm company operator and an owner or
19tenant for the purchase of an alarm system to be utilized in the
20personal residence of the owner or tenant.

21(t) “Firearm permit” means and includes “firearms permit,”
22“firearms qualification card,” “firearms qualification,” and
23“firearms qualification permit.”

24(u) This section shall become operative on January 1,begin delete 2016.end delete
25begin insert 2022.end insert

26

SEC. 3.  

Section 7591.10 of the Business and Professions Code,
27as amended by Section 4 of Chapter 291 of the Statutes of 2012,
28is amended to read:

29

7591.10.  

(a) The director may deny a license, certificate, or
30registration regulated by this chapter on the grounds that the
31applicant has done any of the following:

32(1) Knowingly made a false statement of fact required to be
33revealed in the application for a license.

34(2) Been convicted of a crime. A conviction within the meaning
35of this section means a plea or verdict of guilty or a conviction
36following a plea of nolo contendere. Any action which the bureau
37is permitted to take following the establishment of a conviction
38may be taken when the time for appeal has elapsed, or the judgment
39of conviction has been affirmed on appeal, or when an order
40granting probation is made suspending the imposition of sentence,
P7    1irrespective of a subsequent order under the provisions of Section
21203.4 of the Penal Code.

3(3) Done any act involving dishonesty, fraud, or deceit with the
4intent to substantially benefit himself, herself, or another, or to
5substantially injure another.

6(4) Done any act which if done by a licensee would be grounds
7for suspension or revocation of a license.

8(5) Done any act without a license for which a license is required
9under this chapter.

10(6) Been refused a license under this chapter or had a license
11revoked.

12(7) Been an officer, partner, managing member, or manager of
13any person who has been refused a license under this chapter or
14whose license has been suspended or revoked.

15The bureau may deny a license, certificate, or registration
16pursuant to this section only if the crime or act is substantially
17related to the qualifications, functions, or duties of the license,
18certificate, or registration for which application has been made.

19The denial of a license, certificate, or registration shall be in
20writing and shall describe the basis for the denial. The denial shall
21inform the applicant that if he or she desires a review by the
22disciplinary review committee the review shall be requested within
2330 days of the issuance of the denial. A review shall be held
24pursuant to the provisions of Section 7591.19.

25(b) Notwithstanding any other provision of this chapter, no
26person shall be denied a license, certificate, or registration solely
27on the basis that he or she has been convicted of a felony, if he or
28she has obtained a certificate of rehabilitation pursuant to Chapter
293.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the
30Penal Code, or solely on the basis that he or she has been convicted
31of a misdemeanor, if he or she has met all applicable requirements
32of the criteria of rehabilitation as provided in Section 7591.12.

33(c) This section shall remain in effect only until January 1,begin delete 2016,end delete
34begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
35that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
36that date.

37

SEC. 4.  

Section 7591.10 of the Business and Professions Code,
38as added by Section 5 of Chapter 291 of the Statutes of 2012, is
39amended to read:

P8    1

7591.10.  

(a) The director may deny a license, certificate, or
2registration regulated by this chapter on the grounds that the
3applicant has done any of the following:

4(1) Knowingly made a false statement of fact required to be
5revealed in the application for a license.

6(2) Been convicted of a crime. A conviction within the meaning
7of this section means a plea or verdict of guilty or a conviction
8following a plea of nolo contendere. Any action which the bureau
9is permitted to take following the establishment of a conviction
10may be taken when the time for appeal has elapsed, or the judgment
11of conviction has been affirmed on appeal, or when an order
12granting probation is made suspending the imposition of sentence,
13irrespective of a subsequent order under the provisions of Section
141203.4 of the Penal Code.

15(3) Done any act involving dishonesty, fraud, or deceit with the
16intent to substantially benefit himself, herself, or another, or to
17substantially injure another.

18(4) Done any act which if done by a licensee would be grounds
19for suspension or revocation of a license.

20(5) Done any act without a license for which a license is required
21under this chapter.

22(6) Been refused a license under this chapter or had a license
23revoked.

24(7) Been an officer, partner, or manager of any person who has
25been refused a license under this chapter or whose license has been
26suspended or revoked.

27The bureau may deny a license, certificate, or registration
28pursuant to this section only if the crime or act is substantially
29related to the qualifications, functions, or duties of the license,
30certificate, or registration for which application has been made.

31The denial of a license, certificate, or registration shall be in
32writing and shall describe the basis for the denial. The denial shall
33inform the applicant that if he or she desires a review by the
34disciplinary review committee the review shall be requested within
3530 days of the issuance of the denial. A review shall be held
36pursuant to the provisions of Section 7591.19.

37(b) Notwithstanding any other provision of this chapter, no
38person shall be denied a license, certificate, or registration solely
39on the basis that he or she has been convicted of a felony, if he or
40she has obtained a certificate of rehabilitation pursuant to Chapter
P9    13.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the
2Penal Code, or solely on the basis that he or she has been convicted
3of a misdemeanor, if he or she has met all applicable requirements
4of the criteria of rehabilitation as provided in Section 7591.12.

5(c) This section shall become operative on January 1,begin delete 2016.end delete
6begin insert 2022.end insert

7

SEC. 5.  

Section 7593.1 of the Business and Professions Code,
8as amended by Section 9 of Chapter 291 of the Statutes of 2012,
9is amended to read:

10

7593.1.  

(a) Each individual applicant and each qualified
11manager, partner of a partnership, designated officer of a
12corporation, and designated officer and managing member of a
13limited liability company shall submit with the application one
14personal identification form provided by the chief, upon which
15shall appear a photograph taken within one year immediately
16preceding the date of the filing of the application together with
17two legible sets of fingerprints, one set of which shall be forwarded
18to the Federal Bureau of Investigation for purposes of a background
19check, and personal description of each such person, respectively.
20The identification form shall include residence addresses and
21employment history for the previous five years.

22(b) The bureau may impose a fee not to exceed three dollars
23($3) for processing classifiable fingerprint cards submitted by
24applicants excluding those submitted into an electronic fingerprint
25system using electronic fingerprint technology.

26(c) This section shall remain in effect only until January 1,begin delete 2016,end delete
27begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
28that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
29that date.

30

SEC. 6.  

Section 7593.1 of the Business and Professions Code,
31as added by Section 10 of Chapter 291 of the Statutes of 2012, is
32amended to read:

33

7593.1.  

(a) Each individual applicant and each qualified
34manager, partner of a partnership, and designated officer of a
35corporation shall submit with the application, one personal
36identification form provided by the chief upon which shall appear
37a photograph taken within one year immediately preceding the
38date of the filing of the application together with two legible sets
39of fingerprints, one set of which shall be forwarded to the Federal
40Bureau of Investigation for purposes of a background check, and
P10   1personal description of each such person, respectively. The
2identification form shall include residence addresses and
3employment history for the previous five years.

4(b) The bureau may impose a fee not to exceed three dollars
5($3) for processing classifiable fingerprint cards submitted by
6applicants excluding those submitted into an electronic fingerprint
7system using electronic fingerprint technology.

8(c) This section shall become operative on January 1,begin delete 2016.end delete
9begin insert 2022.end insert

10

SEC. 7.  

Section 7593.6 of the Business and Professions Code,
11as amended by Section 12 of Chapter 291 of the Statutes of 2012,
12is amended to read:

13

7593.6.  

(a) The director may refuse to issue a license to an
14applicant pending final disposition of an investigation of criminal
15activity or of a disciplinary action previously filed against the
16person or applicant or against a qualified manager, partner,
17managing member, or officer of the applicant.

18(b) A new alarm company operator license, qualified manager
19certificate, or alarm agent registration shall be subject to payment
20of any and all fines assessed pursuant to this section and not
21resolved in accordance with the provisions of this section and
22payment of all applicable fees.

23(c) This section shall remain in effect only until January 1,begin delete 2016,end delete
24begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
25that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
26that date.

27

SEC. 8.  

Section 7593.6 of the Business and Professions Code,
28as added by Section 13 of Chapter 291 of the Statutes of 2012, is
29amended to read:

30

7593.6.  

(a) The director may refuse to issue a license to an
31applicant pending final disposition of an investigation of criminal
32activity or of a disciplinary action previously filed against the
33person or applicant or against a qualified manager, partner, or
34officer of the applicant.

35(b) A new alarm company operator license, qualified manager
36certificate, or alarm agent registration shall be subject to payment
37of any and all fines assessed pursuant to this section and not
38resolved in accordance with the provisions of this section and
39payment of all applicable fees.

P11   1(c) This section shall become operative on January 1,begin delete 2016.end delete
2begin insert 2022.end insert

3

SEC. 9.  

Section 7593.7 of the Business and Professions Code,
4as amended by Section 14 of Chapter 291 of the Statutes of 2012,
5is amended to read:

6

7593.7.  

(a) The chief shall issue a pocket identification card
7to the owner, partners, officers, managing members, and qualified
8manager. The chief shall determine the form and content of the
9card. A photo identification card will be furnished to any owner,
10partner, officer, managing member, qualified manager, or branch
11office manager upon written request and payment of the fee
12prescribed by this chapter.

13(b) This section shall remain in effect only until January 1,begin delete 2016,end delete
14begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
15that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
16that date.

17

SEC. 10.  

Section 7593.7 of the Business and Professions Code,
18as added by Section 15 of Chapter 291 of the Statutes of 2012, is
19amended to read:

20

7593.7.  

(a) The chief shall issue a pocket identification card
21to the owner, partners, officers, and qualified manager. The chief
22shall determine the form and content of the card. A photo
23identification card will be furnished to any owner, partner, officer,
24qualified manager, or branch office manager upon written request
25and payment of the fee prescribed by this chapter.

26(b) This section shall become operative on January 1,begin delete 2016.end delete
27begin insert 2022.end insert

28

SEC. 11.  

Section 7594.4 of the Business and Professions Code,
29as amended by Section 18 of Chapter 291 of the Statutes of 2012,
30is amended to read:

31

7594.4.  

(a) Except as herein otherwise provided, no individual
32shall be in active charge of the business if the individual has ever
33had a license revoked for cause or has ever been disqualified from
34further employment in the alarm company operator business
35pursuant to this chapter, or was a qualified manager, partner,
36managing member, or officer of a business whose license has been
37revoked.

38(b) This section shall remain in effect only until January 1,begin delete 2016,end delete
39begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
P12   1that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
2that date.

3

SEC. 12.  

Section 7594.4 of the Business and Professions Code,
4as added by Section 19 of Chapter 291 of the Statutes of 2012, is
5amended to read:

6

7594.4.  

(a) Except as herein otherwise provided, no individual
7shall be in active charge of the business if the individual has ever
8had a license revoked for cause or has ever been disqualified from
9further employment in the alarm company operator business
10pursuant to this chapter, or was a qualified manager, partner, or
11officer of a business whose license has been revoked.

12(b) This section shall become operative on January 1,begin delete 2016.end delete
13begin insert 2022.end insert

14

SEC. 13.  

Section 7599.32 of the Business and Professions
15Code
, as amended by Section 20 of Chapter 291 of the Statutes of
162012, is amended to read:

17

7599.32.  

(a) A licensee shall notify the bureau within 30 days
18of any change of its officers or members required to be named
19pursuant to Section 7593.4 or 7593.5 and of any addition of a new
20partner.

21(b) Applications, on forms prescribed by the director, shall be
22submitted by all new officers, managing members, and partners.
23The director may suspend or revoke a license issued under this
24chapter if the director determines that the new officer, managing
25member, or partner has committed any act which constitutes
26grounds for the denial of a license pursuant to Section 7591.10.

27(c) A notice of warning may be issued for the first violation of
28this section and a fine of twenty-five dollars ($25) for each
29subsequent violation.

30(d) This section shall remain in effect only until January 1,begin delete 2016,end delete
31begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
32that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
33that date.

34

SEC. 14.  

Section 7599.32 of the Business and Professions
35Code
, as added by Section 21 of Chapter 291 of the Statutes of
362012, is amended to read:

37

7599.32.  

(a) A licensee shall notify the bureau within 30 days
38of any change of its officers required to be named pursuant to
39Section 7593.4 and of any addition of a new partner.

P13   1(b) Applications, on forms prescribed by the director, shall be
2submitted by all new officers and partners. The director may
3suspend or revoke a license issued under this chapter if the director
4determines that the new officer or partner has committed any act
5which constitutes grounds for the denial of a license pursuant to
6Section 7591.10.

7(c) A notice of warning may be issued for the first violation of
8this section and a fine of twenty-five dollars ($25) for each
9subsequent violation.

10(d) This section shall become operative on January 1,begin delete 2016.end delete
11begin insert 2022.end insert

12

SEC. 15.  

Section 7599.34 of the Business and Professions
13Code
, as amended by Section 22 of Chapter 291 of the Statutes of
142012, is amended to read:

15

7599.34.  

(a) No licensee shall conduct a business as an
16individual, partnership, limited liability company, or corporation
17unless the licensee holds a valid license issued to that exact same
18individual, partnership, limited liability company, or corporation.
19A violation of this section may result in a fine of one hundred
20dollars ($100) for each violation.

21(b) As a condition of the issuance, reinstatement, reactivation,
22or continued valid use of a license under this chapter, a limited
23liability company shall, in accordance with the provisions of this
24section, maintain a policy or policies of insurance against liability
25imposed on or against it by law for damages arising out of claims
26based upon acts, errors, or omissions arising out of the alarm
27company services it provides.

28(c) The total aggregate limit of liability under the policy or
29policies of insurance required under this section shall be as follows:

30(1) For a limited liability company licensee with five or fewer
31persons named as managing members pursuant to Section 7593.5
32or 7599.32, the aggregate limit shall not be less than one million
33dollars ($1,000,000).

34(2) For a limited liability company licensee with more than five
35persons named as managing members pursuant to Section 7593.5
36or 7599.32, an additional one hundred thousand dollars ($100,000)
37of insurance shall be obtained for each person named as managing
38members of the licensee except that the maximum amount of
39insurance is not required to exceed five million dollars ($5,000,000)
P14   1in any one designated period, less amounts paid in defending,
2settling, or discharging claims as set forth under this section.

3(d) Prior to the issuance, reinstatement, or reactivation of a
4limited liability company license as provided under this chapter,
5the applicant or licensee shall, in the manner prescribed by the
6bureau, submit the information and documentation required by
7this section and requested by the bureau, demonstrating compliance
8with the financial security requirements specified by this section.

9(e) For any insurance policy secured by a licensee in satisfaction
10of this section, a Certificate of Liability Insurance, signed by an
11authorized agent or employee of the insurer, shall be submitted
12electronically or otherwise to the bureau. The insurer issuing the
13certificate shall report to the bureau the following information for
14any policy required under this section: name, license number,
15policy number, dates that coverage is scheduled to commence and
16lapse, the date and amount of any payment of claims, and
17cancellation date if applicable.

18(f) If a licensee fails to maintain sufficient insurance as required
19by this section, the license is subject to suspension.

20(g) Where the license of a limited liability company is suspended
21pursuant to subdivision (f), each member of the limited liability
22company shall be personally liable up to one million dollars
23($1,000,000) each for damages resulting to third parties in
24connection with the company’s performance, during the period of
25suspension, of any act or contract where a license is required by
26this chapter.

27(h) This section shall remain in effect only until January 1,begin delete 2016,end delete
28begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
29that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
30that date.

31

SEC. 16.  

Section 7599.34 of the Business and Professions
32Code
, as added by Section 23 of Chapter 291 of the Statutes of
332012, is amended to read:

34

7599.34.  

(a) No licensee shall conduct a business as an
35individual, partnership, or corporation unless the licensee holds a
36valid license issued to that exact same individual, partnership, or
37corporation. A violation of this section may result in a fine of one
38hundred dollars ($100) for each violation.

39(b) This section shall become operative on January 1,begin delete 2016.end delete
40begin insert 2022.end insert

P15   1

SEC. 17.  

Section 7599.42 of the Business and Professions
2Code
, as amended by Section 24 of Chapter 291 of the Statutes of
32012, is amended to read:

4

7599.42.  

(a) Within seven days after any violent incident
5involving a dangerous weapon that has been caused by or occurred
6upon a licensee or any officer, partner, managing member, qualified
7manager, or employee of a licensee, while acting within the course
8and scope of his or her employment, and that results in bodily
9injury to any person or death of any person involved in that incident
10or of any discharge of a weapon, excluding any discharge which
11occurs on the range, the licensee or his or her manager shall mail
12or deliver to the chief a detailed report of the incident. The report
13shall describe fully the circumstances surrounding the incident,
14any injuries or damages incurred, the identity of all participants,
15and whether a police investigation was conducted. A violation of
16this section may result in a fine of twenty-five dollars ($25) for
17the first violation and one hundred dollars ($100) for each
18subsequent violation.

19(b) This section shall remain in effect only until January 1,begin delete 2016,end delete
20begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
21that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
22that date.

23

SEC. 18.  

Section 7599.42 of the Business and Professions
24Code
, as added by Section 25 of Chapter 291 of the Statutes of
252012, is amended to read:

26

7599.42.  

(a) Within seven days after any violent incident
27involving a dangerous weapon, that has been caused by or occurred
28upon a licensee or any officer, partner, qualified manager, or
29employee of a licensee, while acting within the course and scope
30of his or her employment, and that results in bodily injury to any
31person or death of any person involved in that incident or of any
32discharge of a weapon, excluding any discharge which occurs on
33the range, the licensee or his or her manager shall mail or deliver
34to the chief a detailed report of the incident. The report shall
35describe fully the circumstances surrounding the incident, any
36injuries or damages incurred, the identity of all participants, and
37whether a police investigation was conducted. A violation of this
38section may result in a fine of twenty-five dollars ($25) for the
39 first violation and one hundred dollars ($100) for each subsequent
40violation.

P16   1(b) This section shall become operative on January 1,begin delete 2016.end delete
2begin insert 2022.end insert

3

SEC. 19.  

Section 7599.43 of the Business and Professions
4Code
, as amended by Section 26 of Chapter 291 of the Statutes of
52012, is amended to read:

6

7599.43.  

(a) Within seven days after receiving a final civil
7court judgment filed against the licensee or any officer, partner,
8managing member, qualified manager, or employee of a licensee
9for an amount of more than five hundred dollars ($500) pertaining
10to any act done within the course and scope of his or her
11employment that may be in violation of this chapter, the licensee
12or his or her manager shall mail or deliver to the chief a copy of
13the judgment. A violation of this section may result in a fine of
14twenty-five dollars ($25) for the first violation and one hundred
15dollars ($100) for each subsequent violation.

16(b) This section shall remain in effect only until January 1,begin delete 2016,end delete
17begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
18that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
19that date.

20

SEC. 20.  

Section 7599.43 of the Business and Professions
21Code
, as added by Section 27 of Chapter 291 of the Statutes of
222012, is amended to read:

23

7599.43.  

(a) Within seven days after receiving a final civil
24court judgment filed against the licensee or any officer, partner,
25qualified manager, or employee of a licensee for an amount of
26more than five hundred dollars ($500) pertaining to any act done
27within the course and scope of his or her employment that may be
28in violation of this chapter, the licensee or his or her manager shall
29mail or deliver to the chief a copy of the judgment. A violation of
30this section may result in a fine of twenty-five dollars ($25) for
31the first violation and one hundred dollars ($100) for each
32subsequent violation.

33(b) This section shall become operative on January 1,begin delete 2016.end delete
34begin insert 2022.end insert

35

SEC. 21.  

Section 7599.48 of the Business and Professions
36Code
, as amended by Section 28 of Chapter 291 of the Statutes of
372012, is amended to read:

38

7599.48.  

(a) No licensee, or officer, partner, managing
39member, manager, or employee of a licensee, shall knowingly
40make any false report to his or her employer or client for whom
P17   1information is being obtained. A violation of this section may
2result in a fine of one hundred dollars ($100) for the first violation,
3and five hundred dollars ($500) for each subsequent violation.

4(b) This section shall remain in effect only until January 1,begin delete 2016,end delete
5begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
6that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
7that date.

8

SEC. 22.  

Section 7599.48 of the Business and Professions
9Code
, as added by Section 29 of Chapter 291 of the Statutes of
102012, is amended to read:

11

7599.48.  

(a) No licensee, or officer, partner, manager, or
12employee of a licensee, shall knowingly make any false report to
13his or her employer or client for whom information is being
14obtained. A violation of this section may result in a fine of one
15hundred dollars ($100) for the first violation, and five hundred
16dollars ($500) for each subsequent violation.

17(b) This section shall become operative on January 1,begin delete 2016.end delete
18begin insert 2022.end insert

19

SEC. 23.  

Section 7599.61 of the Business and Professions
20Code
, as amended by Section 30 of Chapter 291 of the Statutes of
212012, is amended to read:

22

7599.61.  

(a) The director may suspend or revoke an alarm
23company operator license, a qualified manager certificate, an alarm
24agent registration, or a firearms permit, issued under this chapter,
25if the director determines that the licensee or his or her manager,
26if an individual, or if the licensee is a person other than an
27individual, or his or her employees, that any of its officers, partners,
28managing members, employees, or its manager, has:

29(1) Made any false statement or given any false information in
30connection with an application for a license or a renewal or
31reinstatement of a license.

32(2) Violated any provisions or committed any prohibited acts
33of this chapter.

34(3) Been convicted of any felony or misdemeanor including
35illegally using, carrying, or possessing a dangerous weapon.

36(4) Committed or permitted any employee to commit any act,
37while the license was expired, which would be cause for the
38suspension or revocation of a license, or grounds for the denial of
39an application for a license.

P18   1(5) Committed assault, battery, or kidnapping, or used force or
2violence on any person, without proper justification.

3(6) Violated, or advised, encouraged, or assisted the violation
4of any court order or injunction in the course of business as a
5licensee.

6(7) Been convicted of a violation of Section 148 of the Penal
7Code.

8(8) Committed any act which is a ground for denial of an
9application for license under this chapter.

10(9) Committed any act prohibited by Chapter 1.5 (commencing
11with Section 630) of Title 15 of Part 1 of the Penal Code.

12(10) Committed any act in the course of the licensee’s business
13constituting dishonesty or fraud.

14(b) This section shall remain in effect only until January 1,begin delete 2016,end delete
15begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
16that is enacted before January 1,begin delete 2016,end deletebegin insert 2022,end insert deletes or extends
17that date.

18

SEC. 24.  

Section 7599.61 of the Business and Professions
19Code
, as added by Section 31 of Chapter 291 of the Statutes of
202012, is amended to read:

21

7599.61.  

(a) The director may suspend or revoke an alarm
22company operator license, a qualified manager certificate, an alarm
23agent registration, or a firearms permit, issued under this chapter,
24if the director determines that the licensee or his or her manager,
25if an individual, or if the licensee is a person other than an
26individual, or his or her employees, that any of its officers, partners,
27employees, or its manager, has:

28(1) Made any false statement or given any false information in
29connection with an application for a license or a renewal or
30reinstatement of a license.

31(2) Violated any provisions or committed any prohibited acts
32of this chapter.

33(3) Been convicted of any felony or misdemeanor including
34illegally using, carrying, or possessing a dangerous weapon.

35(4) Committed or permitted any employee to commit any act,
36while the license was expired, which would be cause for the
37suspension or revocation of a license, or grounds for the denial of
38an application for a license.

39(5) Committed assault, battery, or kidnapping, or used force or
40violence on any person, without proper justification.

P19   1(6) Violated, or advised, encouraged, or assisted the violation
2of any court order or injunction in the course of business as a
3licensee.

4(7) Been convicted of a violation of Section 148 of the Penal
5Code.

6(8) Committed any act which is a ground for denial of an
7application for license under this chapter.

8(9) Committed any act prohibited by Chapter 1.5 (commencing
9with Section 630) of Title 15 of Part 1 of the Penal Code.

10(10) Committed any act in the course of the licensee’s business
11constituting dishonesty or fraud.

12(b) This section shall become operative on January 1,begin delete 2016.end delete
13begin insert 2022.end insert

14

SEC. 25.  

No reimbursement is required by this act pursuant to
15Section 6 of Article XIII B of the California Constitution because
16the only costs that may be incurred by a local agency or school
17district will be incurred because this act creates a new crime or
18infraction, eliminates a crime or infraction, or changes the penalty
19for a crime or infraction, within the meaning of Section 17556 of
20the Government Code, or changes the definition of a crime within
21the meaning of Section 6 of Article XIII B of the California
22Constitution.



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